Penn National Gaming: Is PENN stock worth a buy?

Casino and racetracks operator Penn National Gaming Inc. (NASDAQ:PENN, PENN:US) hit the trending charts on Friday, July 2, while its stocks declined 0.8 per cent at market open.

The gaming stock, trading at US$ 75.8 apiece around 10AM EDT, noted the decline after it recorded a surge of about one per cent in premarket hours.

The average trading volume of PENN shares was over 5.3 million in the past ten sessions, up from 4.2 million in the 30 days. PENN stock declined by five per cent in the past month, and marginally grew by 0.4 per cent in the past week.

Ever since the stock scored a 52-week high of US$ 142 apiece on March 15, 2021, the stock has been on a downward trajectory. Its present price, however, remains notably above its 52-week low of US$ 26.96 (July 8, 2020).

Penn National Gaming Inc. (NASDAQ:PENN)

An operator of casinos and racetracks in the US, the company closed the purchase of Hollywood Casino Perryville in Maryland on Thursday, July 1.

The gaming company also recently completed a private offering of 4.125 per cent senior notes due in 2029, recording an aggregate principal amount of US$ 400 million. The proceeds raised, the company said, will be used for general corporate affairs.

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As per TMX data, Penn National's market cap stands at C$ 11.8 billion, while its price-to-book ratio   is 4.3. PENN stock also offers a 1.5 per cent return on equity and a 0.2 per cent return on assets.

Outperforming the NASDAQ Composite Index's growth of 67.4 per cent in the last twelve months, PENN stock surged by 139.4 per cent in the same period.

In the first quarter of 2021, Penn National recorded revenues of US$ 1.27 billion, as compared to US$ 1.1 billion in Q1 2020. The gaming enterprise recorded a net income of US$ 90.9 million in latest quarter, as against a net loss of US$ 608.6 million in Q1 2020.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.

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